Closing Costs
The fees and expenses paid at closing on top of the down payment — typically 1.5% to 4% of the purchase price depending on province and buyer type.
Closing costs are the fees paid at the time of mortgage closing, above and beyond the down payment and mortgage itself. Components include land transfer tax (provincial and sometimes municipal), legal fees ($1,000–$2,500 typical), title insurance ($200–$400), home inspection ($400–$700), appraisal ($350–$500, often rebated by the lender), mortgage insurance premium (if high-ratio, amortized into mortgage), GST/HST on new builds, and prepaid property tax and utilities. Total closing costs range from 1.5% to 4% of the purchase price depending on province (high in Ontario/BC, low in Alberta) and buyer type (first-time buyer rebates reduce LTT costs).
Related Terms
A provincial (and sometimes municipal) tax paid by the buyer at closing on any property transfer — absent in Alberta and Saskatchewan, highest in Ontario/BC/Toronto/Montreal.
A one-time insurance policy protecting you and your lender from title defects, fraud, encroachments, and survey issues — typically $200–$400 for the lifetime of ownership.